THE PAINFUL TRUTH: CRIMINAL LAW ISN’T TAX LAW

Well-known criminal defense attorney F. Lee Bailey recently represented himself in a case before the Tax Court. The court concluded, in a 143-page opinion (F. Lee Bailey v. Commissioner, T.C. Memo 2012-96, April 2, 2012), that Bailey: Failed to report all of his...

CALLING PAYMENTS AN EXPENSE DOESN’T MEAN THEY ARE

A recent Tax Court decision serves as a reminder that refundable deposits are not deductible as a business expense as long as the payor has a right to recover the deposit. The case (Ernest N. Zweifel v. Commissioner, T.C. Memo 2012-93, March 28, 2012) involved a bail...

SOMETIMES IT’S JUST A HOBBY

Parents’ involvement in their children’s activities is usually good. But they shouldn’t expect the IRS to consider it a legitimate part of their business. Many parents support their children by attending concerts, plays, sporting events and other...